List of 50

Before buying a home, there are many different things that must be evaluated in relation to the property. Here is a checklist of 50 items about your new home in particular that are worth evaluating before you buy.

1. Your Ability to Get a Loan
Before finding your dream home and getting too far into the home evaluation, you will want to find out how much you can afford. One of the best ways to do this is by obtaining a pre-approval. This pre-approval will give you the confidence you need to take the process a step further. It will also make you seem like a more attractive buyer in the eyes of a seller.

2. Your Need for a Lawyer
Some states require homebuyers to have an attorney who can assist in the legal aspects of a home purchase, and some states don’t. One of your first steps in the home buying process should be determining whether or not you are going to need a lawyer.

3. The Disclosure Statement
Home sellers are required to provide you with an official Disclosure Statement if you are preparing to buy their home. This statement must include any known defects that the house has, as well as information about easements or special assessments on the property. Make sure you carefully look over the Disclosure Statement and evaluate the information you find.

4. The Home Inspection
Home inspections are essential in this day and age. No matter how clean or how new a home might seem, there is no telling what could be lurking behind walls, in attics, or within the crawlspace. This is why you need a qualified home inspector to look for anything that may become a problem after you buy the home. An inspector can make recommendations about needed repairs or provide you with a guarantee and the confidence you need to make a purchase decision.

5. The Age of the Home
When purchasing a home, it is important to consider the year in which the home was built. Older homes may be less energy efficient than their newer counterparts, and may also come with problems like lead paint, asbestos, and outdated plumbing systems. At the same time, older homes are usually less expensive to buy and pay taxes on. Oftentimes, homebuyers just need to decide whether they want to spend extra money initially to purchase the home or later on if and when repairs become necessary.

6. The Builder’s Reputation
A home is only as good as the builder who constructed it. If you have made the decision to purchase a new home, checking out the builder’s reputation is strongly recommended. You can either ask the builder for a list of customers or speak with others in the neighborhood that are currently living in houses the builder has constructed.

7. Structure
A home inspection will play a big part in helping you determine the soundness of a structure, but you should also be sure to take a look at things for yourself. Items that you should pay particularly close attention to are the foundation of the home, ceilings, walls, beams, and rafters. If you notice any cracks or other signs of deterioration it could be a sign of poor construction or excess settling.

8. The Size
Size matters, especially when it comes to homes. You will want to carefully evaluate the size of everything from the bedrooms and bathrooms to the yard outside. If the home can’t accommodate your current or future needs, you will need to determine whether or not it can be remodeled to do so.

9. The Lot
If you will be buying a mobile, manufactured, or modular home straight from the manufacturer, it is a good idea to make sure you have a place to put it before closing on the deal. Keep in mind that evaluating the lots you find is just like evaluating properties with existing homes. The important thing is that you take your time and find just the right place.

10. The Location
Location, location, location. You hear real estate agents talking about it all the time. The reason is because location is essential when it comes to resale value. Homes on corner lots are often worth more, as are homes in gated communities. Homes that are located across the street from power plants, cemeteries, and strip clubs on the other hand, can sometimes have a low resale value. Before purchasing a home, look around and think like a real estate agent.

11. Parking
In some sites, parking is a huge issue. If your home has no driveway, a shared driveway, or lacks access to a parking garage, you may have a difficult time finding a place to park while living in the home and an even more difficult time selling the home later on.

12. Traffic Volume
If the home is not located in a quiet suburb or out in the country, you may want to evaluate the volume of traffic that will be passing by the house each day. For example, is the home located on a busy highway or on a city street? What about near the airport or train tracks? A high volume of traffic may be extremely annoying as time goes by.

13. Hidden Costs
Beware of hidden costs. When living in a subdivision or gated community, you may be subject to homeowner’s association fees or other mandatory fees that the real estate agent or builder forgot to mention initially. These fees can really add up and may undermine your investment. To protect yourself, ask specific questions about the fees you may or may not be required to pay if you decide to buy the home.

14. The Indoor Environment
There could be chemicals and other unhealthy pollutants already within the indoor environment of the home. Examples include carbon monoxide, radon, asbestos, and the presence of lead. While some of these items may be checked for in a home inspection, others may not be. This is why it is a good idea to contact the local extension office or county Health Department for more information on testing.

15. The Outdoor Environment
Just like the indoor environment, the outdoor environment could be fraught with unseen perils. There are many different companies who can offer you detailed reports on natural and environmental hazards that may be located under or around the home. Items subject to investigation include soil, underlying earthquake faults, and neighboring plants and factories that may be polluting the area.

16. Damage from Pests
Some lenders may automatically require a termite or pest inspection. Others may not. Either way, you might want to think about calling in a pest control professional to perform a formal inspection, especially if you see evidence of wood being damaged by termites, beetles, or carpenter ants.

17. Water Quality
Not every home draws water from a city water system. Some homes have individual wells. In cases such as these, it is a good idea to find out the depth of the well—the deeper the better. You may also want to consider having the water checked by your county’s Health Department. They will be able to assess the quality and determine whether or not it is safe to drink.

18. Sewage Disposal
While it may not be the most fun item to think about when evaluating your home, knowing how the sewage is disposed is important. Some homes, especially those within urban areas, will be connected to a city sewage disposal system. Others will utilize a septic tank. If the home does not have a city sewer system, ask questions about the age of the septic tank and the frequency of disposals in recent years. You can also check for potential problems by looking to see how well the toilet flushes and how fast the sinks drain.

19. Energy Efficiency
With energy costs on the rise, the energy efficiency factor of a home has become more important than ever before. This is why you want to carefully evaluate the amount of insulation a home has, as well as the efficiency rating of the current heating and cooling systems. If the home isn’t as energy efficient as you would like it to be, you can get an Energy Efficient Mortgage or get estimates on how much it will cost you to make the desired upgrades.

20. Electrical Systems
An electrician should be called in to examine the wiring, outlets, and grounds before you buy the home, especially if you will be purchasing an older home. Your home inspector may look the system over as well, but will almost always recommend additional checks by a licensed electrician if there are any doubts or potential problems.

21. Heating and Cooling Systems
Like electrical systems, heating and cooling systems may also be analyzed in an official home inspection. If they are not, it is recommended that you call in a qualified HVAC professional to evaluate the state of the current system and estimate the cost of necessary upgrades.

22. Plumbing Systems
The age of a plumbing system is as important as how well it is currently functioning. If the home still contains galvanized pipes, you may have to re-plumb the entire house someday. Oftentimes with galvanized pipes, you are forced to replace all of the pipes when one pipe goes bad.

23. Crawl space Clearance
Before buying a house, you will want to make sure there is a basement, or at minimum, adequate clearance within the crawlspace for inspections and repairs. If there is not, you could run into serious and expensive problems in the future.

24. Surrounding Trees
Trees can be a beautiful addition to any yard. Unfortunately, they can also encroach upon the roof and foundation of your home, and be costly to remove or trim. When walking around the home, pay special attention to where trees are planted, where root systems are located, and how the trees branch out above and around the home.

25. The Likelihood of Ground Water Damage
The placement of your home and property is very important. If you are located at the bottom of a hill or in another low spot where water is more apt to run towards your home rather than away from it, drainage problems are likely to occur. Because most standard homeowner’s insurance policies do not cover ground water damage, these drainage problems have the potential to become very costly.

26. The Likelihood of Natural Disasters
Natural disasters can happen to anyone at anytime, but some areas are more likely to be struck by hurricanes, tornados, floods, and earthquakes than others. Before buying a home, you might want to find out if it is located on a flood plain or in an area commonly referred to as Tornado Alley.

27. Estimated Repair Costs
If a personal or professional inspection of the home found that repairs will be necessary immediately or within the first few years, you will want to get several different estimates to determine exactly how much these repairs will cost you. Keep in mind that after purchasing the home you may be on a more restricted budget than you are now.

28. Estimated Remodeling Costs
Perhaps the home only has two bedrooms and you want three. Or perhaps you are hoping to someday remodel the bathroom to get it a little closer to what you think an ideal bathroom should look like. Whatever the case may be, you should carefully evaluate the estimated costs of remodeling to make sure it is within the realms of your budget.

29. Your Need for a Home Warranty
If you are concerned about the possibility of unexpected repairs, you have the option of purchasing a home warranty. This warranty will cover all or most of the repair costs for a specific period of time, usually one to two years. Although not every new homeowner needs a home warranty, it may prove to be a wise decision for some.

30. Building Reports
Before remodeling our adding outside items like fences and sheds, homeowners are required to get building or other types of permits. Unfortunately, not all homeowners do this and unknowingly break building codes and rules as a result. During the evaluation of a home, you should check building reports and obtain copies of permits that are currently on file.

31. Local Zoning Laws
Zoning laws are a local issue and tend to vary significantly depending on the village, town, city, township, or county that the home is located in. Before assuming that you can remodel or put an addition on the home, learn as much as you can about the laws in the area.

32. Local Building Codes
Like zoning laws, building codes can vary significantly from area to area. Before purchasing a home, you should make sure it is up to code. If it isn’t you may not be able to live in the home, or worse, it could be condemned. Hiring a professional home inspector will prove to be very helpful when it comes to determining whether or not the home complies with local building regulations.

33. The Tax Bill
Owning a home means that you are subject to property taxes. The amount you are required to pay will depend heavily upon the location, as well as the home’s age and value. To learn more about your potential tax bill, you can speak with the seller’s real estate agent or the local assessor’s office.

34. The Title
To protect yourself from legal claims and other future problems, you will want to perform a title search on the property before any money changes hands. A title company can perform the search and check for liens, pending legal actions, zoning ordinances, and others restrictions on the current title.

35. The Title Insurance Policy
After a title search has been performed, the title company will provide your lender with a title insurance policy. It should be noted that this policy protects only the lender—not you. This is why it is often recommended that homebuyers secure their own title insurance policy as an added measure of protection.

36. Homeowner’s Insurance Costs
Some homes cost more to insure than others, especially homes that are near water or in known earthquake zones. Before buying a home, you should find out how much it will cost to insure it. You can get free policy quotes online or from your current insurance agent.

37. The Survey
Although this step is not always required by a lender, it may not be a bad idea to have the property surveyed anyway before making the actual purchase. If the survey indicates that your potential neighbors have put up a fence or garage on the property you will be purchasing, you could have a legal battle on your hands, or at best, an uncomfortable situation if you ever ask the neighbor to get their stuff off your property.

38. The Appraisal
Lenders almost always require an appraisal before any money changes hands. An appraisal is an evaluation of the property’s market value and is performed by a licensed appraiser. After evaluating the property, the appraiser will give both you and the lender a written copy of the assessment. Be sure to look your copy over carefully and make note of any problems the appraiser might have pointed out.

39. The Market’s Appreciation Rate
The national housing market has recently had its fair share of ups and downs. If you are buying the home as an investment, or if you have any intention of selling the home within a year or two, you will want to carefully evaluate the market in which the home is located. If the home appreciation values have been consistent, you can probably buy with confidence. If not, you may want to think carefully before signing on the dotted line. Keep in mind however, that markets can turn quickly. An example of this could be seen recently in the Florida area. Between 2004 and 2005, the average Florida home appreciated in value by 40 percent. The next year, the market switched and values dropped by 8 percent.

40. The Value of Neighboring Homes
As important as the state of the area’s housing market is, the value of neighboring homes may be even more important. This is why it is a good idea to evaluate the prices of other homes that are for sale in the immediate neighborhood. Essentially, you want to make sure you are paying the going rate. If it seems you are overpaying, there had better be a very good reason as to why.

41. The Local Government
Checking out the current tax and value assessments of a property is all well and good, but it gives you no idea of what might occur in the future. This is why you may want to take things a step further and investigate the way the local government handles money and how they plan to handle it in the future. For example, you may want to find out whether or not there are any special assessments being planned or a tax hike expected in the near future. Such changes can significantly impact the taxes you pay, as well as the future value of your property.

42. The Proximity to Your Workplace
When evaluating a home, it is a good idea to find out how close the home is to your workplace. If you plan on keeping your job and your home for years to come, the commute will be something you need to deal with on a daily basis.

43. The Quality of Schools
If you have children, are thinking of having children, or hope to resell the home within a few years, the quality of schools within your district will prove to be very important. In the best case scenario, there will be several different schools or at least one very good school within close proximity to the home.

44. Resources in the Community
Although most potential homebuyers think to look for good schools and homes that will be in close proximity to their work, they forget to evaluate the resources that will be available to them in the community. Some of the most important things to look for include fire departments, police departments, hospitals, physician and dental offices, food stores, department stores, banks, libraries, restaurants, public transportation, and sources of recreation.

45. The Safety of the Neighborhood
Safety is important. If you live in a bad neighborhood, you are more likely to be the victim of burglary or a violent crime. One of the best ways to determine how safe the neighborhood is involves speaking to those who currently live in the neighborhood. Try to ask the real estate agent, as well as several different people who live nearby about recent crimes. You can also try calling the local police department for statistics.

46. The Amount of Time the Home Has Been For Sale
You should always find out how long a home has been on the market as part of your evaluation. This will give you an idea of how eager the seller may be to get off the property, and an idea of how large your initial offer should be. If the home has only been for sale for three months, the seller may not be as likely to deal as a seller who had been trying to get rid of a property for three years.

47. The Deposit
If you will be putting an offer in on the home, you may be asked to come up with a deposit or earnest money. The size of this deposit isn’t set in stone and should be carefully evaluated. While you want to make the amount high enough so that the seller knows you are serious, you don’t want to put down an unnecessarily large deposit. If you decide to back out of the deal, you may have to forfeit some or all of this earnest money.

48. Contingencies
When you make an official offer on a home, a contract will be drawn up. Before the contract can be considered binding, both you and the seller must meet any contingencies (conditions) that have been noted in the contract. You should carefully evaluate any conditions that you need to set as a buyer and any conditions the seller has noted prior to adding your signature.

49. Expense Sharing
Before the date of settlement, you will need to reach an agreement with the seller in regards to shared expenses. Specific expenses to discuss may include condominium or home association fees, taxes, and utility charges. Unless you agree otherwise, you should not be responsible for any bills incurred before you take possession of the home.

50. The Final Walk Through
Prior to closing, you will probably be given the opportunity to do a final walk through of the home. If you get the chance, take it. During the final walk through, you can check to make sure that any agreed upon repairs have been made. You can also make sure that items you agreed to purchase in conjunction with the home, such as furniture or appliances, have not been removed.

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